Bank of America Co. (BAC/NYSE): general analysis
14 August 2018, 15:35
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 30.25 |
| Take Profit | 29.90, 29.50, 29.20 |
| Stop Loss | 30.70 |
| Key Levels | 29.00, 29.50, 30.30, 30.80, 31.40, 31.80 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 31.45 |
| Take Profit | 32.00, 32.40 |
| Stop Loss | 31.00 |
| Key Levels | 29.00, 29.50, 30.30, 30.80, 31.40, 31.80 |
Current trend
After the publication of a strong quarterly report on July 16 with the growth of financial indicators above market expectations, Bank of America shares grew by 6.79%. Since the end of last week, the price is in correction.
The Board of Directors of Bank of America announced the payment of quarterly dividends of $0.15, which is 25% higher than last year's figure.
During the last week, the Bank of America declined by 3.30% against the fall of S&P 500 index by 1.00%.
Support and resistance
"Bearish" moods prevail. Yesterday, #BAC decreased by more than 2%. The instrument has updated local extremes. At the moment, the key range is 30.30–30.80. There is potential for further correction. MACD histogram has moved to the negative zone and continues to decline, which indicates the strength of the sellers. It is better to open the positions according to the current trend.
The comparative analysis of the indicators of the company and its competitors suggests the neutrality of its share prices.
Resistance levels: 30.80, 31.40, 31.80.
Support levels: 30.30, 29.50, 29.00.
Trading tips
Short positions can be opened after the price is set below the level of 30.30. The closing of the profitable positions is possible at the levels of 29.90, 29.50 and 29.20. Stop loss is 30.70.
Long positions can be opened after the price is set above the level of 31.40 with the targets at 32.00–32.40. Stop loss is 31.00.
Implementation period: 3 days.
After the publication of a strong quarterly report on July 16 with the growth of financial indicators above market expectations, Bank of America shares grew by 6.79%. Since the end of last week, the price is in correction.
The Board of Directors of Bank of America announced the payment of quarterly dividends of $0.15, which is 25% higher than last year's figure.
During the last week, the Bank of America declined by 3.30% against the fall of S&P 500 index by 1.00%.
Support and resistance
"Bearish" moods prevail. Yesterday, #BAC decreased by more than 2%. The instrument has updated local extremes. At the moment, the key range is 30.30–30.80. There is potential for further correction. MACD histogram has moved to the negative zone and continues to decline, which indicates the strength of the sellers. It is better to open the positions according to the current trend.
The comparative analysis of the indicators of the company and its competitors suggests the neutrality of its share prices.
Resistance levels: 30.80, 31.40, 31.80.
Support levels: 30.30, 29.50, 29.00.
Trading tips
Short positions can be opened after the price is set below the level of 30.30. The closing of the profitable positions is possible at the levels of 29.90, 29.50 and 29.20. Stop loss is 30.70.
Long positions can be opened after the price is set above the level of 31.40 with the targets at 32.00–32.40. Stop loss is 31.00.
Implementation period: 3 days.
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